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Some health insurance companies have proposed to introduce cohort-based pricing, which is akin to the claim-based loading that was abolished by regulator IRDAI in 2013. The proposal is completely illogical and immoral, says Kamesh Goyal
Life insurance savings plans such as endowment, money-back, or Unit-Linked Insurance Plans enable investors to accumulate wealth over time. These policies are meant to help individuals achieve their long-term financial goals
A higher surrender value on nonpar policies, which guarantee survival or maturity benefit without depending on insurers profit, could lead to an increase in more people giving up on policies prematurely, according to the insurers. This could result in a decline in persistence levels — or the proportion of policyholders who opt to pay premiums regularly — for the life insurance sector, according to them.
They add that IRDAI is aiming to boost insurance penetration in India, and the draft circular aims to do that.
Regulator has sought public comments on the paper till January 3